Suzuki has won approval for its Chapter 11 plan to stop selling cars in the US and concentrate instead on the company’s powersports products. Judge Scott C. Clarkson of the US Bankruptcy Court for the Central District of California approved the plan after the company’s creditors agreed to the conditions.
Suzuki will now sell its motorcycle, ATV and marine divisions to the newly minted Suzuki Motor of America subsidiary under the Suzuki name. The new company will be wholly owned by Suzuki Motor Company. This is the final piece of the company’s restructuring puzzle.
The company says it will now be able to grow its powersports businesses here in the US and also provide auto parts and service to current Suzuki owners through what’s left of the company’s dealer network. You can check out the brief press release on the bankruptcy plan below.
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Court Approves American Suzuki Motor Corporation’s Chapter 11 Plan
BREA, Calif., Mar. 1, 2013 – American Suzuki Motor Corporation (the “Company”)
today announced that the Honorable Scott C. Clarkson of the U.S. Bankruptcy Court for
the Central District of California in Santa Ana approved the confirmation of the
Company’s Chapter 11 Plan, which creditors overwhelmingly accepted. Confirmation of
the Plan clears the way for the Company to complete its restructuring process, which is
expected to occur on March 31, 2013.
As previously announced, the Plan approved the Company’s sale of its Motorcycles/ATV
and Marine divisions and Automotive parts and service operation to a newly organized,
wholly-owned subsidiary of Suzuki Motor Corporation. The subsidiary will operate in the
continental U.S. as Suzuki Motor of America, Inc. and will use the Suzuki products brand
name.
“Today’s confirmation is a significant milestone and is one of the last remaining steps in
our realignment and restructuring process,” said M. Freddie Reiss, the Company’s Chief
Restructuring Officer. “During the next few weeks, we will take final steps to implement
the Plan, which will allow the Company to sell its Motorcycles/ATV, Marine, Automotive
parts and service divisions. This will promote the long-term growth of the
Motorcycles/ATV and Marine divisions, as well as providing automotive parts and
service through the dealer network.”
A copy of the Plan is available at www.omnimgt.com. Additional information regarding
Company’s business realignment can be found at the following website,
www.suzuki.com, or via an information hotline at 1-877-465-4819.